equitable, and just disposition to be made of the same, in concurrence with the views of the Governments of the United States and Mexico.

These suggestions, briefly presented, embrace very important considerations, affecting materially the interests of the people of the two countries, between which, I am sure, strong friendship exists. They exhibit clearly the injustice of allowing insurrectionists to continue their operations against our Government upon Mexican soil, or to accumulate property against the law of blockade in Mexican territory, which is to be appropriated ultimately to the supply of munitions of war; and the purchase of armed vessels in foreign States for the purpose of driving from the seas or destroying American commerce may show in a still stronger degree the iniquity of allowing the fraudulent seizure of property of citizens, in great part of Mexican origin, under pretext of rebel authority, and the appropriation of the same to aggrandizement of the assumed agents who have been parties to the seizure. Such acts as these, persisted in, might be regarded as justifying the invasion of Mexican territory by the Government of the United States, upon the right, simply, of self-preservation. Such extreme claims will not, of course, be urged, but you will represent in the strongest manner the confidence that is felt in the justice of the Mexican authorities, and our confident belief that they will promptly enforce our rights and afford the redress which justice demands.

I have the honor to be, with high respect, yours, &c.,

N. P. BANKS,

Major-General, Commanding.

NEW ORLEANS,

November 13, 1863.

Major General N. P. BANKS,

Commanding Department of the Gulf, in the Field:

GENERAL: The steamers Crescent and Clinton have arrived here this morning, bringing your dispatches of November 9 instant.

I shall forward the dispatches by special messenger to Washington ont he steamer of to-morrow.

Permit me to tender my congratulations on the great and most important success attained. Its results cannot fail to be appreciated by the country.

The Crescent and Clinton will, if possible, be gotten off on their return to-morrow, carrying 1,000 men of First Division, Thirteenth Army Corps, and wagons and mules for General Dana's division.

Colonel Beckwith has been directed to send an efficient commissary of subsistence.

After conversing with Major Houston, I shall probably be able to get one or two regiments of colored troops off to you as soon as transportation can be provided. As I understand your instructions, however, I shall first send "good troops."

Very respectfully, I am, general, your obedient servant,

CHAS. P. STONE,

Brigadier-General, and Chief of Staff.

P. S. - I have been this morning summoned to appear before the United States district court to show cause why I should not be fined and imprisoned for contempt to court, in having seized the steamer Alabama. I shall appear and treat the court with all respect, but if a disposition is shown to thwart military operations by these officers of the court, I shall arrest them.